REG - Water Intelligence - Expansion of Credit Facility

Water IntelligenceAnnouncement

21/12/2023 07:15

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RNS Number : 5343X  Water Intelligence PLC  21 December 2023

 

Water Intelligence plc

 Expansion of Credit Facility

Water Intelligence plc (AIM: WATR.L) (the "Group" or "Water Intelligence"), a
leading multinational provider of precision, minimally-invasive leak detection
and remediation solutions for both potable and non-potable water is pleased to
announce that it has agreed with M&T Bank to expand its credit facility
for acquisitions.

Reinforcement of Growth Strategy

The Group recently provided a Trading Update on 5 December 2023 in which it
expressed a favorable outlook for 2024 and beyond.  It also highlighted
current investments to support organic growth, such as a state of the art
training centre in Connecticut to meet market demand for its solutions
including anticipated demand from additional national insurance contracts.

The Group also noted that it had a strong balance sheet with cash and cash
equivalents of $17.2m (at 31 October 2023) and a relatively low degree of
leverage, enabling it to pursue accretive acquisitions to complement organic
growth. The Group's Net Debt (including all bank debt and deferred
consideration) to Statutory EBITDA TTM ratio at the end of October was 0.58.
To further enhance its capabilities for a strong 2024, the Group announces
today an expansion of its credit facility to make available $5 million. Even
with an additional $5 million deployed, the Group would still have a
conservative position in terms of leverage.

Highlights of Enhanced Credit Facility

·    Increase Acquisition Line of Credit by $5 million (the "Facility")

·    When amounts are drawn from the Facility, the loan amount converts
into a 5-year term loan ("Term Loan")

·    Interest rate on the Term Loan is a floating rate that is capped at
8% through the use of a customized financial product; moreover, if market
rates decrease during the 5 year period, then Water Intelligence gets the
benefit of a reduction of the interest rate for the underlying loan.

·    Cost of capital for the facility is kept at the lowest level relative
to overall market conditions

 

Commenting on the Group's facility, Executive Chairman, Dr. Patrick DeSouza
remarked:

"We look forward to a strong 2024 as we have significant available capital to
deploy for increasing shareholder value. We appreciate the help of M&T
Bank to structure a facility that helps us manage our cost of capital to the
lowest level relative to the market."

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

Enquiries:

 Water Intelligence plc
 Patrick DeSouza, Executive Chairman               Tel: +1 203 654 5426
 RBC Capital Markets - Joint Broker                Tel: +44 (0)20 7653 4000
 Rupert Walford

 Elizabeth Evans

 Daniel Saveski

 WH Ireland Limited - NOMAD & Joint Broker         Tel: +44 (0)20 7220 1666
 Hugh Morgan

 James Bavister
 Dowgate Capital Ltd - Joint Broker                                Tel:  +44 (0)20 3903 7715

Stephen Norcross

 

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